The industry body wants interest and penalties waived and disputed duties cut according to the age and stage of cases, alongside wider tax changes to ease business costs.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is urging the government to use the Union Budget for 2027–28 to clear long-running Customs disputes worth about ₹1.5 trillion. Its proposal would waive interest and penalties and reduce the disputed duty by a scale linked to how old a case is and how far it has progressed through litigation, Business Standard reported.
The chamber wants priority for cases involving countervailing duty and special additional duty, levies charged on imports before the goods and services tax (GST) began in July 2017. The Central Board of Indirect Taxes and Customs’ guidance distinguishes those earlier charges from the integrated GST and compensation cess that applied under the post-GST system. ASSOCHAM says unresolved disputes over the former duties remain a source of litigation, a concern it has raised in previous Budget discussions, according to The Economic Times. (business-standard.com)
ASSOCHAM is also seeking deadlines for closing provisional Customs assessments, including reviews by the Special Valuation Branch, which examines import prices in transactions between related companies. It proposes that an assessment become final where delays are not attributable to the importer. The wider aim, the chamber says, is to give businesses greater certainty and free up resources tied up in tax cases. (business-standard.com)
For manufacturers, the industry body wants the return of a concessional tax regime modelled on Section 115BAB of the Income-tax Act. That provision offered qualifying new domestic manufacturing companies a 15 per cent rate, but only where production began by 31 March 2024. The Income Tax Department’s guidance sets out that deadline and the regime’s eligibility conditions; ASSOCHAM is asking for a longer window and relaxed requirements, not reporting a change already adopted by the government. The chamber has made similar calls for tax simplification in earlier Budget submissions, The Economic Times reported. (business-standard.com)
On investments in listed securities, ASSOCHAM proposes a 10 per cent long-term capital gains tax rate for holdings kept for more than one year but under two, and no tax or a rate of about 5 per cent for holdings beyond two years. As an alternative, it suggests allowing investors to offset securities transaction tax against their long-term gains tax liability. (business-standard.com)
The chamber also wants to widen access to the Income Tax Department’s Dispute Resolution Committee, proposing that the disputed-addition ceiling rise from ₹10 lakh to ₹10 crore. The department’s Form 34BC guidance describes the existing committee process and eligibility framework. ASSOCHAM is separately calling for faster, conclusive decisions from the Board for Advance Rulings. (business-standard.com)
Other requests include tax incentives for research carried out jointly by companies and recognised academic institutions, accelerated depreciation for data-centre infrastructure, and clearer rules for foreign companies buying data-centre services through Indian resellers. ASSOCHAM has previously sought greater tax certainty for overseas businesses using Indian data centres, according to Business Standard. It says its broader package is intended to lower compliance costs and make investment decisions more predictable. (business-standard.com)
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
